Nvidia stock has come under pressure this week, retreating from a month-to-date high of $227 to around $208. That pullback now faces a key test, with the company scheduled to publish its financial results on Wednesday — just as analysts at Raymond James raise their price target and forecast a 67% jump from the current level. The results carry weight well beyond a single stock: Nvidia is among the largest weights in the S&P 500, and its earnings have become a closely watched gauge of overall AI infrastructure spending.

Raymond James Boosts Nvidia Target to $352

Analysts covering Nvidia have remained highly bullish on the company. In a note, Raymond James analysts raised their target on the stock to $352 from the previous $330, a level that implies roughly 67% upside from where the shares currently trade (source).

Raymond James, a firm valued at $40 billion, cited Nvidia's entry into the CPU industry. That push builds on the Arm-based Grace processors Nvidia already ships in its data-center systems, and it comes after the company abandoned its attempted $40 billion acquisition of Arm in 2022 amid regulatory opposition. The analysts see the business having a strong growth trajectory because of the ongoing AI agent trend, and they eventually expect it to account for 5% of total revenue as Nvidia becomes a major competitor to AMD and Intel, the two companies that have long dominated the server CPU market.

The analysts also noted that Nvidia's valuation makes it a bargain. Despite the company's strong revenue, profits, and free cash flow metrics, Nvidia trades with a forward price-to-earnings ratio of 23, much lower than its five-year average of 43. The same is true of its free cash flow valuation metric, with the forward price-to-free cash flow falling to 23 from a five-year average of 45.

These numbers indicate that investors see some risks that may affect Nvidia's business. Among the potential risks is the circular investment approach, under which Nvidia invests in its clients, who then use the funds to buy its chips. Nvidia has announced multibillion-dollar equity investments in AI companies including OpenAI and Anthropic — the kind of arrangements at the center of that debate. There are also concerns that the AI bubble may burst in the near future — a warning voiced prominently by Michael Burry, who accurately predicted the Global Financial Crisis.

Other Analysts Also Bullish

Other top analysts tracking Nvidia hold a bullish outlook on the stock. MarketBeat data shows that the average estimate among analysts is $308, about 45% above the current level. Analysts at firms including Rosenblatt Securities, Cantor Fitzgerald, DA Davidson, BMO Capital Markets, and RBC believe the stock may jump to over $300.

Nvidia Earnings Expected to Be Strong

The next important catalyst for the NVDA stock price is its upcoming earnings report, due out on Wednesday this week.

Nvidia has a long history of beating and raising its revenue and earnings estimates. This time, there is a likelihood that revenue doubled to more than $93 billion, with third-quarter guidance of $106 billion. Analysts expect the two numbers to come in at $92 billion and $103 billion. Beyond the headline figures, attention typically centers on data-center revenue — by far Nvidia's largest business — and on management's commentary about demand and supply for its newest chips.

There are no signs that the company has lost momentum. Most of its suppliers, such as SK Hynix and TSMC, recently published strong financial results — a telling signal, since SK Hynix supplies the high-bandwidth memory (HBM) used in Nvidia's AI accelerators, while TSMC manufactures Nvidia's chips. At the same time, its top clients — Microsoft, Google, and Amazon — also released strong financial results and boosted their guidance.

In addition to revenue and earnings growth, the company will likely boost its share buybacks and dividends in a bid to increase shareholder returns. In its last earnings report, Nvidia announced $80 billion in share buybacks, and it may point to its cheap valuation to justify a bigger repurchase program.

Nvidia Stock Price Technical Analysis

The daily chart shows that the NVDA stock price has slumped over the past few days, moving from a high of $227 to a low of $207 on Monday. There are now signs, however, that the stock is slowly forming a harami candlestick pattern — a big bearish candle followed by a small bullish one. Harami is a Japanese word meaning a pregnant woman.

The stock has also filled the fair value gap that formed a few weeks ago and remains above the 50-day Exponential Moving Average (EMA). On that basis, the most likely scenario is a bounce back that retests the resistance at $227.